Kansas Administrative Regulations

Agency 40.  Insurance Department

Article 5.  Credit Insurance

 

40-5-10 Credit insurance; fire and extended coverage; issuance for single indivisible premium; requirements.

 

Fire and extended coverage insurance permitted by Kansas administrative regulation 40-5-6 may be issued for a single indivisible premium subject to the following requirements:

(a)  The location of the property insured shall be extended by the policy provisions to insure the property at any location within the continental limits of the United States.

(b)  The maximum amount of insurance permitted under this policy shall not exceed $10,000.

(c)  The insurer shall be required to obtain a statement from the insured that indicates all of the following:

(1)  No other valid and collectible insurance on the insured property exists.

(2)  The purchase of insurance from any insurer or agent was the choice of the insured.

(3)  The purchase of insurance in connection with the credit transaction is entirely voluntary and not a prerequisite to the extension of credit.

(d)  The creditor shall not refuse or decline the insurance provided by the consumer except for reasonable cause.

 

(Authorized by K.S.A. 40-103, 16a-4-112; implementing K.S.A. 16a-4-301, 16a-4-111; effective Jan. 1, 1966; amended Jan. 1, 1974; amended May 1, 1979; amended May 1, 1986; amended May 1, 1987; amended Oct. 30, 1998.)